Homes are now Being Appraised at Less That the Materials to Build Them?

Well, I Just had a brand new home appraised using distressed properties as comparables. The builder discounted the home , and the appraiser just devalued it $80,000. That's 37%. If builders cannot build a home and at the very least cover the materials, we are in for an economy with no new home starts.

Something needs to be done. Giving banks money is not solving our problems. Appraisers are using the lowest comps they can find regardless of condition or age. If banks don't need the loans to make money, the appraisers run unchecked. This is a very bad economic indicator.